Biology Forums - Study Force

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours. It has provided the following information for the year:

Actual manufacturing overhead costs incurred   $100,000
Manufacturing overhead costs allocated to production   $56,000
Actual direct materials cost   $220,000
Actual direct labor cost   $40,000
Actual machine hours   32,000 hours

Based on the above information, calculate the predetermined overhead allocation rate applied by Felton Quality.  (Round your answer to the nearest cent.)
A) $1.75 per machine hour
B) $3.13 per machine hour
C) $1.25 per machine hour
D) $6.88 per machine hour

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